Sunday, July 22, 2012

Fortune Reit's Q2 DPU rises 32.5%

Business Times: Sat, Jul 21

[Singapore]  FORTUNE Real Estate Investment Trust (Fortune Reit) saw its distribution per unit (DPU) for the second quarter rise 32.5 per cent year on year from 6.07 HK cents to 8.04 HK cents.

This was achieved on the back of a 33.8 per cent increase in distributable income at HK$136.54 million (S$22.12 million). Quarterly net property income was up 24.2 per cent at HK$196.80 million, while total revenue rose 22 per cent to HK$278.16 million.

For the half year to June 30, Fortune Reit's DPU jumped 23.6 per cent to 15.82 HK cents from 12.80 HK cents a year ago. This implies an annualised distribution yield of 6.9 per cent based on an unit price of HK$4.60, the average of the two closing unit prices in Singapore and Hong Kong as at June 29, 2012.

Half-year income available for distribution also grew by 24.9 per cent year on year to HK$268.33 million from HK$214.81 million a year ago.

Underpinned by strong growth in Hong Kong's retail sector, the retail Reit also saw an improvement in net property income which rose 19.6 per cent year on year to HK$382.11 million for the six months ended June 30. Total revenue was up 20.3 per cent at HK$537.38 million.

Fortune Reit said the stronger numbers were boosted by positive rental reversions across its enlarged portfolio and completed acquisitions.

Looking ahead, the Reit said that the retail sentiment in Hong Kong remains positive. "Fortune Reit's portfolio of 16 private housing estates retail properties will continue to benefit from the strong retail environment. The leases that will expire in the second half of 2012 account for 18.2 per cent and 16.7 per cent of the gross rentable area and gross rental income of Fortune Reit's portfolio respectively."

The counter ended trading yesterday at HK$4.98, up 8 cents.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G) | | | |

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